Business studies - theme 4 - definitions

  • Created by: s2000
  • Created on: 29-05-18 00:14
Offshoring
Moving a business function to another country, generally in order to lower costs.
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Gross Domestic Product (GDP)
A measure of the total output of a country's economy, and dividing this by the population adjusts for countries with much larger populations
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Human Development Index (HDI)
An attempt to provide a single measure of economic development encompassing income, education and health.
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Fixed capital formation
The term used to describe investment in long-term assets from roads to buildings.
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Imports
Products and services produced abroad and consumed domestically.
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Exports
Products and services produced domestically and consumes overseas.
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Foreign Direct Investment (FDI)
Occurs when a business purchases non-current assets in another country.
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Globalisation
The trend towards closer ties between economies and businesses within the global economy.
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Isolationism
Refers to a nation whose trade policies are designed to put the interests of domestic businesses first by imposing trade barriers to hamper imports.
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Protectionism
Giving preference to domestic producers by making it harder for foreign companies to export to your country.
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A tariff
A tax imposed on an imported product to allow it to enter a country.
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A quota
A physical limit on the volume of a product that can be imported in a year. Once the quota is used, only domestically produced goods will be available.
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A subsidy
A payment made by the government to a business producing a certain product or located in a particular area that the government wishes to support.
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A trading bloc
A group of countries that sign up to free trade between them, protected by a tariff wall against imports from outside.
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Dumping
Describes the practice of selling off excess production in a foreign market at an exceptionally low price, which destroys sales for local producers.
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Outsourcing
Contracting another business to perform a business function on your behalf. Frequently that function will be production, often performed by a business located in a lower cost country.
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Disposable income
The money a household has available to spend from income after income tax has been deducted.
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Labour intensive
Describes a business process that relies more on people than machinery.
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Capital intensive
Describes a business process that relies more on machinery than people.
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A joint venture
A formal agreement between two separate businesses to work together for a fixed time on a specific project.
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A merger
Occurs when two firms agree to come together to create a new, single business.
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A takeover
Occurs when one business buys a controlling interest in another business.
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Global competitiveness
Measures the ability of a business to succeed against both domestic rivals and foreign competitors in international markets.
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Glocalisation
A term used to describe an approach to global marketing that maintains a consistent brand and image across the world, but makes adaptations, especially to products, to suit local markets.
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Cultural diversity
The differing interests and values of people from different national backgrounds.
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Culture
Describes normal, acceptable behaviours in a certain context.
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A multinational company/corporation (MNC)
One that has branches or manufacturing plants in several countries.
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Transfer pricing
A technique used by multinationals to adjust the internal prices paid by one branch of their operations to another as a way of minimising the total tax bill paid by the company.
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Lobbying
The process of directly trying to influence key political decision-makers to act in the best interests of a business.
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Other cards in this set

Card 2

Front

A measure of the total output of a country's economy, and dividing this by the population adjusts for countries with much larger populations

Back

Gross Domestic Product (GDP)

Card 3

Front

An attempt to provide a single measure of economic development encompassing income, education and health.

Back

Preview of the back of card 3

Card 4

Front

The term used to describe investment in long-term assets from roads to buildings.

Back

Preview of the back of card 4

Card 5

Front

Products and services produced abroad and consumed domestically.

Back

Preview of the back of card 5
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